Construction industry Zehnder discontinues radiator production in Gränichen
As announced in July, the Zehnder Group is stepping up its cost-cutting measures due to sluggish business. Among other things, the production of flat tube radiators in Gränichen will be discontinued and relocated to France.
29.10.2024, 09:56
SDA
This will involve up to 50 job cuts, as the group, which specializes in indoor climate, announced on Tuesday. The closure of production is planned for April 2025.
Some of the employees affected will be able to transfer to the service and maintenance departments. The company has also initiated a consultation process and is pursuing a social plan.
Meanwhile, a competence center for the core business of room ventilation and indoor climate solutions is to be established at the Gränichen site. This will house the growing service and maintenance business as well as information, training and further education offerings.
Production in Switzerland no longer competitive
The reason for the restructuring is high costs and steadily declining volumes: radiator production in Switzerland is no longer competitive.
The production of flat tube radiators is therefore being relocated to the French plant in Vaux-Andigny. This will increase capacity utilization there, which should improve the cost structure.
According to Zehnder, the emergence of underfloor heating has been dampening demand for radiators in the new construction business for years. This trend is likely to continue.
On the other hand, demand for maintenance services for ventilation systems and for the procurement and processing of components for indoor climate systems is increasing. Jobs will be created here over the next few years, it said.
